HomeMy WebLinkAbout2001-10-11 Airport Commission Summary KENAI AIRPORT COMMISSION
OCTOBER 11~ 2001
KENAI CITY COUNCIL CHAMBERS
7:00 P.M.
'"AGENDA'"
ITEM 1' CALL TO ORDER AND ROLL CALL
ITEM 2' AGENDA APPROVAL
ITEM 3'
APPROVAL OF MINUTES- September 13, 2001
ITEM 4: PERSONS SCHEDULED TO BE HEARD
ITEM 5' OLD BUSINESS
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Discussion -- Aircraft Personal Property Tax
ITEM 6: NEW BUSINESS
ITEM 7: REPORTS
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Commission Chair
Airport Manager
City Council Liaison
ITEM 8:
COMMISSIONER COMMENTS AND QUESTIONS
ITEM 9' PERSONS NOT SCHEDULED TO BE HEARD
ITEM 10- INFORMATION ITEMS
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Kenai City Council Meeting Action Agendas for September 19 and October
3, 2001.
ITEM 11' ADJOURNMENT
KENAI AIRPORT COMMISSION
OCTOBER 11, 2001
KENAI CITY COUNCIL CHAMBERS
7:00 P.M.
CHAIR PRO TEMPORE RON HOLLOWAY, PRESIDING
MINUTES
ITEM 1' CALL TO ORDER AND ROLL CALL
Due to the absence of Commission Chairman Knackstedt and Vice-chair Van Zee,
Commissioner Holloway was selected as Chair Pro Tempore.
Chairman Holloway called the meeting to order at 7:02 p.m. The roll was taken and
confirmed as follows'
Present:
Absent'
Others Present'
Public'
Bielefeld, Haralson, Holloway, Kleidon, Elson
Van Zee, Knackstedt
Councilwoman Swarner, Airport Manager Cronkhite, Department
Assistant Harris
Pat Porter (Kenai), John Bartels (Yukon Fuel Service, Kenai)
ITEM 2: AGENDA APPROVAL
MOTION:
Commissioner Elson MOVED to approve the agenda as presented and Commissioner
Kleidon SECONDED the motion. There were no objections. SO ORDERED.
ITEM 3:
APPROVAL OF MINUTES - September 13, 2001
MOTION:
Commissioner Haralson MOVED to approve the minutes as presented and
Commissioner Kleidon SECONDED the motion. There were no objections.
ORDERED.
SO
ITEM 4: PERSONS SCHEDULED TO BE HEARD -- None
ITEM 5' OLD BUSINESS
Discussion -- Aircraft Personal Property Tax
Airport Manager Cronkhite provided the Commission with a history of aircraft personal
property tax and airport tie-down information. Due to inconsistent past tie-down
records, she asked the Commission to refer to a statistics list from FY2000 (the first
year airport tracking took place). Cronkhite then referred to Pat Porter (Kenai), who
requested this matter be reviewed.
Porter provided the following information:
· She recently noticed and is concerned about the lack of tenants at the
Kenai Airport tie-down spaces and wanted some ideas on how to bring people back.
Stated she felt the main reason tie-down tenants relocated is because of
the current policy on property tax.
John Bartels (Yukon Fuel Service):
· Reported a little more than 20% decrease in fuel sales at his business as
a result of the low airport tie-down tenant rate.
· Stated he knows a minimum of 30 people who have changed their tie-
down location due to the tax. This, he stated, caused a negative ripple effect at his fuel
service business, including a cut in employees.
Cronkhite provided the Commission with a draft Kenai Municipal Airport tie-down fees
list and requested comment from the Commission. Cronkhite pointed out money
saving incentives for tenants who sign a one-year lease. All agreed the draft fees
seemed fair.
The Commission spoke at length regarding aspects of the current method of taxation
versus a set-rate flat tax. Commissioner Bielefeld stated many people were avoiding
the city tax by parking their planes in Wasilla and other places where a flat tax is used.
Bielefeld explained the tax was based on the value of the plane as determined by the
Kenai Peninsula Borough Assessing Office. The Commission spoke about the issue of
the City of Kenai adopting the borough policy of exempting the first $100,000 of
assessed value as a long-term goal. Additionally, the Commission spoke briefly
regarding potential property value assessment miscalculations and the need for
administrative support for City of Kenai residents from any borough assessing
discrepancies.
MOTION:
Commissioner Haralson MOVED to recommend to council a modification in the tax
code on personal aircraft to fall more in line with regard to personal use as that of the
Borough. Commissioner Elson SECONDED the motion.
Without objections, the Commission refined the verbiage of the motion and agreed
.upon:
The Airport Commission recommends to City Council the Kenai city tax code be
amended to reflect a $100~000 exemption on aircraft to match the current KPB
exemption,
AIRPORT COMMISSION MEETING
OCTOBER 11, 2001
PAGE 2
VOTE:
The refined motion passed by UNANIMOUS CONSENT.
MOTION'
Commissioner Haralson MOVED to recommend to City Council the current KBP
aircraft tax code be amended to a flat tax. Commissioner Kleidon SECONDED the
motion. There were no objections. SO ORDERED.
ITEM 6:
NEW BUSINESS- -None
ITEM 7: REPORTS
Commission Chair-- No report
7-b. Airport Manager -- Airport Manager Cronkhite reported on the following:
· City Council will review the draft recommendation of the invitation to bid
for the gift shop/restaurant areas at their next meeting.
· The ARF-SRE building was progressing well and should be completed on
schedule.
7-c. City Council Liaison -- Councilwoman Swarner reported on the following'
· New and returning Council members will be inducted into office at the
next City Council meeting.
Spoke briefly regarding financial terms introduced by Commissioner
Haralson. Haralson explained he obtained airport information from the city website
and requested clarification of several terms (special revenue fund and retained
earnings). Swarner stated she would look into the issue.
ITEM 8:
ITEM 9'
COMMISSIONER COMMENTS AND (~UESTIONS -- None
PERSONS NOT SCHEDULED TO BE HEARD -- None
ITEM 10' INFORMATION ITEMS
lO-a.
Kenai City Council Meeting Action Agendas for September 19 and October 3,
2001.
ITEM 11' ADJOURNMENT
MOTION:
Commissioner Bielefeld MOVED to adjourn. Commissioner Kleidon SECONDED the
motion. There were no objections. SO ORDERED.
AIRPORT COMMISSION MEETING
OCTOBER 11,2001
PAGE 3
The meeting adjourned at approximately 8:00 p.m.
Minutes transcribed and prepared by:
Sharon M. Harris, Department Assistant
AIRPORT COMMISSION MEETING
OCTOBER 11,2001
Page 4